them grounded. you are focusing on him and he's focusing on everything around you. you start to see them get confidence back, communicate differently. they venture out and begin to participate in life again. being able to help them find that joy back in their life, it's pricele. good evening. it is 10:00 on the east coast. we're coming to you from staten island, new york. it is freezing cold and a lot of people are suffering. here across the region, hundreds of thousands without power, nearly two weeks after superstorm sandy hit. we reported this ongoing dis'ser is man made, and i want to tell you about that tonight. keeping them honest. we begin with breaking news. a story that has slind sided the american intelligence community and still developing at this hour. general david petraeus resigned as director of the cia after

admitting he an extramarital affair. they confirm to cnn that the investigators have been exploring tips on an affair with paula broadwell, his biographer. they tried to see if there was a potential security risk, in other words to see if petraeus could possibly be black mailed. petraeus is a highly respected, retired four-star general who commanded forces in both iraq and afghanistan. he was sworn in to run the cia a little over a year ago with vice president biden with his wife holly at his side. that was the swearing in. they've been married 35 years, have two grown kids. so how will this revelation exact the u.s. intelligence community? joining me now is fran townsend and bob baer and suzanne kelly. suzanne, what more can you tell

us about the probe into the relationship with paula broadwell? do we know how long this has been going on? >> we don't know how long it was going on, but just the -- so they're the ones that would look into accusations of inappropriate access to classified information. individuals that hold clearances, are they doing what they need to be doing to make sure that information stays safe? is there any opportunity whatsoever that that information could be exploited by either a spy or anyone else who shouldn't have access to that information. so the fact that they were the ones looking into this, tells you that, you know, they were concerned about some of the e-mail things. let's back up for a moment. this was a tip that they were given. that there was this relationship going on between the two. what they have dug into were things like e-mails, texts, things like that. and they know the two, if it turns out to be paula, and we can't confirm it is, and a tip

was given using her name. they would look at communications between the two, and especially since you mentioned general david petraeus is taken over the generalship of the cia. >> and, suzanne, we don't know how long the fbi was investigating, do we know if the obama administration knew about this before the election? >> no, but wouldn't we all love to know the answer to that. that really is a burning question. just days after the election, something like this comes out. clearly something like this had been going on for a while. it wasn't -- you know, it's not likely that a couple of days after the election, general petraeus had a crisis of conscience and decided this is the time now for me to come clean on everything. which also makes you wonder, did other people know about this? was there the possibility they could have used this against him or to black mail him in any way? that would have spoken directly to his ability to protect secrets as well. lots of unanswered questions. more will be coming out in the

coming days. >> the other questions, did the administration, if they knew about it decide not to let this be announced before the i election because they didn't want to do anything that would impact the election? does that raise security concerns. fran, cnn is not reporting that petraeus admitted to having an affair, just that he admitted to having an affair. he didn't say publicly with whom. the fbi investigated a tip he was involved in an extramarital affair with broadwell. you are on the cia's external advisory committee. did petraeus' work with broad well ever raise eyebrows? >> she had incredible access. spent a year over in afghanistan. so, you know, in washington, unfortunately, any sort of competent woman has that sort of access and is successful there,

is bound to be snipping and gossiping. i don't think anybody took it seriously. he seemed beyond reproach. he worked incredible hard, incredibly confident. dianne feinstein called his resignation tragic. i think that's right. it's a real loss to the country. this aside, right. so you asked suzanne when would the white house have known? whenever the fbi opens an investigation of a narrow fishl, they have to make notifications of that, especially if there is some counterintelligence conc n concern. we've heard that would have wen to jim clap either who would have notified the national security adviser or chief of staff. they would have been aware of this, because of the very concern of a breach of some sort of national security information that they were investigating.

>> >>. >> bob, i know you say this is an extraordinary event. the fact that they were investigating, does that add up so far to you? >> no. there is something missing. the fbi does not as a matter of routine look into the affairs of cia officers. nor the director. it's -- it's not criminal on the face of it, i'm quite sure -- this is sheer speculation, that there was some sort of leak, some sort of criminal investigation or cia investigation, based on a solid piece of information. that there was a leak that petraeus was talking too much to this woman, that somebody else was monitoring the relationship. something else was there. i have never seen in my career or afterward, a cia director investigated like this, and john deutsch was because there was misuse of computers, but that was a fairly minor affair, and

as far as affairs go, there's only been one reported, and that was colby, and that was -- that came out after he had died. and the other thing is, normally when a cia director resigns under this sort of pressure, he would do it quietly. he would say that he was doing it for family reasons, and he would go off. never hear anymore about it. someone would write a book about it ten years later. to use it in his resignation letter is extraordinary. >> well, it makes me wonder if he wanted to get in front of it, or if there is another shoe to drop. rather than having it come out in drips and drabs, better just to admit it. >> that's one way to get ahead of it. there was the question of bengha benghazi. a lot of questions that he was going to take the fall for the death of the ambassador.

and i know the cia was leaking right and left on the timeline of what happened in benghazi, did it offend the white house? did it contribute to releasing the fbi investigation about his affair? we just don't know now. >> suzanne what do you make of that? there is a lot of chatter about benghazi? >> i push back a little bit. i take a very cautious approach about the benghazi effort. the person sitting in the hot seat and will aanswer the questions will be mike morrow, and he's been very closely involved in the investigation from the beginning, putting together the cia's timeline and whatnot. the president, if he really needed a fall guy for benghazi, it would have happened before the election. someone to sort of say, i messed up. i don't think we've seen any strong evidence yet that the cia makes such fatal mistakes in benghazi, that someone had to

take a fall like this. so significant, you really have to have a strong body of evidence to prove something like that. >> the question of the timing is really interesting. i just -- if this investigation has been going on for a long time and we don't know, but it's hard to believe that the administration, that the white house would not have known about it prior to the election, and that raised the question, if it was the security risk or there was security concerns, should it have been dealt with sooner? >> right. anderson, make no mace take abo mistake about it, there are protocols that require the investigation of someone in the white house. it may have gone through the director of national intelligence, jim clap either. but because of the potential security concerns, at a minimum, the white house chief of staff would have been known. it would not have been widely briefed for many good reasons. would you have kept it in a tight circle. you would be sure that someone

at the white house at a very senior level would have been made aware of it, and frankly in an effort to be sure they were watching any interactions with the president, anything that seemed out of the ordinary, so that they could have reported that into the fbi investigation. the other thing is, these are -- if the fbi was looking at e-mails and text messages, the sorts of natural investigative steps they would have taken, whether that -- going back to when he was -- she was writing the biography this would have been a substantial body of material that would have taken some time to get through. this was not a new investigation and wasn't done quickly it would have been taken very seriously. >> obviously, more questions i guess right now than answers, fran townsend, appreciate it. appreciate your reporting. let us hear what you think. i've been tweeting about this already tonight. up next, the company responsible for 150,000 people in the new york area still without power. we'll tell you about a damning report about how unprepared that

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♪ is your cholesterol at goal? talk to your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. welcome back. we are live in staten island. people have been enduring far more than most of us ever will. on top of the blow that superstorm sandy dealt them, they are suffering a man made disaster. it did the have to happen. ample warning, a year ago and years before that. signs that went unheeded. as always, tonight we're keeping them honest. the worst involves one utility company's failure and the contractor's failure to restore power to tens of thousands of customers, about 150,000 in all. the company's name is lipa, the long island power authority. the contractor that does the

actual work is national power grid. here is what andrew cuomo has had to say. >> we gave them a franchise because they represented themselves as experts at doing this. they failed and they should be held accountable for their failure. in the meantime, they should be doing everything humanly possible to improve their performance and get these people out of the pain and suffering that they have been subjected to. >> what they've been subjected to includes more than just a dozen days without power. it's service calls the customers say are going unanswered, crews that don't show up, companies that seem to not know where the problems even are. >> the governor and the president of the united states have come into this area to see the devastation that is katrina without the bodies. >> we have to turn to lipa. president, vice president, we need people to take care of our community.

they're screwing up! we're angry and we're not taking it anymore. >> if you can say something to lipa right now, what would it be? >> you stink. >> thank you so much for nothing. you're fabulous. >> one day they told us it was going to be maybe thanksgiving. so yes, it's very rough. very, very rough. >> there's no inspectors, we don't know where an inspector is, and we're not flooded. >> it's so bad that some local officials want the military and u.s. department of energy to step in and temporarily take over lipa management. lipa just can't hack it. a new york state investigation says that they neglected vital maintenance and did not budget enough for disaster response. paper maps like this one were pretty much state of the art, according to the report. paper maps they're using. lipa has lagged behind other utilities, not using smartphones tablets or even printers and fax machines. paper memos were preferred and

slow dial up internet access the rule. even worse, lipa's power outage management system runs on a 25-year-old main grain computer. it was blamed in part for lipa's slow response last year to irene, and it cast doubt on how seriously lipa and national grid took its lessons from irene. a consultant who helped prepare the report "all these things were identified, meaning the short comings, but they all cost money." that includes simple preventative measures like trimming trees around power lines and inspecting utility poles. the report says lipa lacked even basic procedures for repairing downed wires, keeping communications open with customers. by the way, our inquiries to lipa went unanswered. however, a press conference late tonight, national grid denied they were failing its customers. they said it's progressing very well based on the unprecedented storm. however, a lot of people disagree and we managed to speak to some of them.

>> do you want to hear what i have to say or not? >> reporter: anger, frustration and despair in the rockaways, as people demand to know why the neighborhood remained dark as nearly 12 days after superstorm sandy hit this community. >> i can't get nothing. heat, garbage pickup, nothing? >> reporter: workers from the power authority known as lipa are visible but can't seem to get the electricity back in 150,000 homes, especially those in the flood area. new york's governor has threatened to pull the company's operating license. >> we paid them and we gave them a franchise because they represented themselves as experts at doing this, and they failed. and they should be held accountable for their failure. >> reporter: at the mt. carmel baptist church next to a public housing complex, volunteers worked hard at serving meals and keeping up morale. many left before sunset. the trains are still not running

this far out. one woman told us it felt like martial law here with people bolted inside their homes after dark. >> there is no power, no light. you could barely see in front of you. it's difficult. you have a hard time. so usually you try to get in before the sun goes down. >> reporter: kenneth gonzalez, a registered nurse, is now crammed into his living room, what he now shares with three other people and the few belongings he could save. >> if someone comes in here with guns to take what little i have left, what am i supposed to do? it's like armageddon or something, they just forgot about us. how are we to survive? >> as you know, it is bitterly cold in these areas. people talk about looting. there is a real fear here about looting. how much is that fear based on reality? how many cases do we know there

has been? is it more widespread or is it kind of more a fear of what might happen? >> reporter: actually, anderson, it is the only crime over the last two weeks that has actually gone up in numbers, according to the police department. burglaries up 7%. even murders are down during this particular period, but you've got burglary that is up. it's a crime of opportunity. you have people who are either going to homes and they're seeing if anybody is inside, or what you also have is you have people sort of stealing things that are being left out. people are trying to take copper wires from refrigerators, from freezers, anything that they can really get their hands on. so it is a palpable number that people are afraid. but think about it, anderson. even if you look, this is a floodlight. that light over there is in a

place where there are usually six or seven lights, so people really are in the dark. and that is a problem. now, we do see a lot of police cars out here, and they are demobilized to heavily lit areas. we see the sanitation trucks starting to get back in order. the housing, the hra brought some extra resources out here to help people get extra food stamps and benefits, because 25% of all the public housing in queens is actually here in this part of the rockaways. so there is a socioeconomic component to it, and it's one where people really feel like they've been abandoned, anderson. >> debra, i appreciate the reporting. many people are opening their wallets to help, but there are fraudulent charities, stay tuned for more. and experience to look beyond the obvious. we'll uncover opportunities, find hidden risk, and make success a reality. bny mellon wealth management tomato, obviously. haha. there's more than that though, there's a kick to it. wahlalalalallala!

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over the years, we've done a lot of work with doctors without borders. this is the first time they are operating in the u.s., on the frontlines dealing with the

victims of the storm. we'll talk to the director of critical operations, next. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

many of the victims of superstorm sandy have lost everything. their needs are enormous right

now, food, clothing, medicine, shelter and a lot more. but now the fbi is warning that scammed charities could be steering relief away from victims by stealing from you. we've been reporting on bad charities for months, but what we didn't know about is extensive business on these pop-up charities that come up in the wake of a disaster. they exist only to prey on the weak and take your money. >> reporter: the scams start according to internet expert jan ulrich even before the storm begins. as soon as a hurricane announced, the internet is abuzz, registering names for their domains. >> you have no idea who these people are. >> what you do notice is they do register hundreds of these

domains, in part trying to trick people to go to these domains and donate the money. >> reporter: from his home in jacksonville, florida, he's already tracked more than a thousand internet domains with the words sandy or relief. some registered early but most as soon as the forecast predicted this would be a killer storm. sites that pop up like this one registered in north carolina, urging people to donate to help victims in jamaica, linking the would-be donor to a paypal account. >> i couldn't find what was behind it. you can check registered the domaining, and there is this tool that tells you who registered the domaining. let's just look this up here and see what comes back. it's here, a person in north carolina that hasn't registered, but whether or not that's real, who knows. >> reporter: we checked.

the charity is not registered with the state of north carolina as the law requires. some sites are even more blatant. personal appeals on crowd sourcing sites, creating a web page just asking for money. on this site called indy go go, there were 32 pages for pleas for cash. we headed -- we left the city and headed south towards family in pennsylvania. we were finally let back into salem and our home was destroyed. or a man in the bronx who wants $60,000 to repair his business. there is simply no way to determine if any of these pleas or people are real. and before you think no one would send donation to see blind sites or unknown charities, think again. >> most people respond to charities because they are asked by a letter. >> reporter: art taylor, who heads the better business bureau's alliance, and is following our reporting on bad charities, says 70% of americans who give money donate that money without ever checking to find out where it's going. >> we welcome the public

scrutiny that is coming to this. we welcome, you know, the media for getting involved in this because if you don't, i worry that things are going to get worse. people are going to continue to be duped by, you know, unscrupulous claims. >> reporter: which leads us to the real victims of charity scams, the people who really need charity. like these people lined up at the bethel assembly church of god not far from downtown newark, new jersey. a missouri-based charity called convoy of hope is here handing out coats, blankets, food, water. real help for real victims. any donations mistakenly sent to a bad charity or a scammer is a donation not committed to you. >> you'll find good apples and bad apples, and you do your best to be one of the good guys. you do your best knowing that, hey, there's going to be others out there that do things wrong, that do things for the wrong reasons that are unethical, but when you go in with the right heart in the first place,

everything works out. >> it's so outrageous, it makes me so mad. i hear there's even a charity using cnn's name. >> we just heard about this, it's an e-mail being sent out, and what you will see is an e-mail which seems to show our page, cnn 360 which shows breaking news about sandy. what we're told is this is a way to actually try to infect your computer. put in some malware and eventually get your banking information. so they're even using cnn at a time like this. >> obviously there's been a lot of talk about asking people to donate to the american red cross. there's been criticism of the red cross as well. where is the money going? >> they're the biggest. they get the most money. $117 million donated in pledges so far to the red cross to date. we look at these rating systems, charitynavigated.com.

they tell us 92% of the funds donated actually go to funds to help people. the red cross is good and they're pretty big. they can handle it. >> they don't target for particular things. you give to the red cross, right? >> this is the big criticism, that they use sandy to raise tremendous amount of funds that go to other disasters, other programs, other overhead that might need it. they tell us, and we've been in contact with the red cross, no. the sandy money is going to sandy victims. they guarantee that. they've got 300 trucks out, served 3.5 million meals so far. they're in ten different states. we don't see them here, there's been a lot of complaints, but the red cross is saying if you donated to hurricane sandy, your money is going to help hurricane sandy victims. we'll keep on it. >> drew griffin, thank you so much for the reporting. it's so important. in addition to the red cross, we've git couple more places to find legitimate charities and to help the people here. the first is charitynavigator.org.

they basically rank these charities and give you a sense of which ones are transparent. go to cnn.com/impact, and you can find a list of other groups. but charitynavigator.org will tell you the legitimate ones out there. it's sickening that people prey on these victims. how do you deal with this every day? >> i survive. i'm in survival mode. i caught a guy coming out of one of my neighbor's houses with a sack of i.d.s, security card, picture i.d.s. i stay out here all night long and patrol the block. >> you patrol the block. >> that's right. you can ask any one of my neighbors. i'm out here all night long

patrolling the block, doing the best i can. people are taking things. we have nothing now and they're taking what little we have left. >> no one wants to leave their house because they're afraid someone will come and take their stuff. >> exactly. so i stay out here with my friends, and my son stays by my side 24/7. >> and when do they say you might see electricity or anything? >> they don't know. they've given us no answers what soefr on that. they don't know themselves, i guess. they just tapped my electric and i can't get electrical. >> how are you doing? >> it breaks my heart. i put that cross up and five minutes later a priest walked up my block, and that's the truth. he blessed my home. i said, father, look, i just hung up this cross and then he blessed my home.

an out-of-town priest. he came from out of town, a church, to help out. >> there have been a lot of volunteers here, which is amazing. >> unbelievable. but they have other lives, they have to work. they can't be here every day. but i'm here every day. i'm retired, so i'm here every day just doing what i can do. i'm by myself with my son. >> do you think this block will come back? >> i'm not leaving. i've been here 20 years. i have a family here. i'm gog rebuild. >> so you're going to rebuild. >> yeah, i'm not going nowhere. i'm not going nowhere. >> thanks. appreciate it. >> thank you. >> we're standing here in staten island where so many homes have been lost, people are still without power, living in the freezing cold. one of the striking facts is manhattan is so close. for those who aren't familiar with this area, i want to show you what i'm talking about. times square manhattan was mainly the dividing line. staten island sits just southwest of manhattan.

you can take the ferry back and forth. that's how close we are. in the wake of sandy, it seems like a world away. boarders are on the scene bringing medical relief to victims. the first time they've responded to a disaster in the united states. the director of doctors without borders, she joins us now. when i think of doctors without borders, i think of you guys in rwanda and all around the world. what's it like to work in the united states? >> it's different, i should say, but we learned our lesson from katrina when we thought medical needs would be covered, and when we realized there were gaps, it was too late for us to react. so this time we decide to do monitor the situation and be able to respond and try to fill some of the medical gaps. >> what were you doing? you guys were in the rockaways, which was very badly hit.

>> we've been supporting some shelters in staten island here. with the help of the community, we've been working with shelters in brooklyn. but this is a very difficult situation for us, because we have to cover large areas, and it's not about working in shelters where people are regrouped, it's really about reaching out to the population who are homebound in high-rise buildings, who can't move, and who have been without electricity nor heating nor any contact with the outside world for almost two weeks now. >> they're in these high-rise buildings, they have no power, they can't use the toilets in many cases, and these are people who the storm hit right at the end of the month. a lot of them received public assistance, they would have gotten their checks, and their medicine would have been sent at the beginning of the month, so they're without their medicine. >> that's exactly the problem, and 60% of the contacts we've made were about drug refill and

prescription refill. we have a lot of high blood pressure, hypertension, and that's where we need mitigation at this moment. >> if someone is hiv positive and they miss their medication even one day, that can have a very serious health impact on them. >> that's true. we had one patient today who was in need of an hiv medication and could only get it from manhattan. so we are only able to get it tomorrow and bring it back to them. >> i'm surprised there aren't health workers from the city health department going door to door checking on people, but you don't see that. >> that's a very complicated story because there are actually a lot of people on the ground, lots of community. the mobilization of the community is absolutely phenomenal. >> there are no health clinics on various blocks. >> there are health clinics but clearly a lack of coordination. you can't ask the local community to take care of the coordination and do the planning in the coming days. >> right, somebody needs to be organizing it -- >> the borough gets the public

services to do that, and it's been very hard to mobilize them on this front. >> it's ridiculous that two weeks after the storm that that kind of organization from the city isn't in existence, and hopefully getting some attention on it will help. i appreciate all you're doing. >> thank you very much. >> excellent organization. up next, can the men and women at these two addresses head off a deal for the major crisis. we're talking about congress and the white house. should republicans reshape themselves after this republican defeat? mary matalin joins us ahead. from local communities to local businesses. the potential of yelp unlocked. nyse euronext. unlocking the world's potential. to a currency market for everyone. the potential of fxcm unlocked. nyse euronext. unlocking the world's potential.

hey, welcome back. we'll have a lot more on the situation here in staten island and also on the looming fiscal cliff and what anyone in congress may do about it. we'll be right back. companies have to invest in making things. infrastructure, construction, production.

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i was talk to go the doctors at doctors without borders during the break, and one thing they said they really needed was someone from the city health department or the city government, a decision maker, to answer their calls, to get in touch with them to try to help organize kind of the medical response in the rockaways in particular, to try to get it organized because they're not organized. so if someone from the health department or city government is listening, doctors without borders would really like to get in touch with you. the bush tax cuts, as you know, expire on new year's day and automatic budget cuts kick in, unless congress and the white house can agree that damage cuts won't destroy the government.

>> if we're serious about reducing the deficit, we have to combine spending cuts with revenue. and that means asking the wealthiest americans to pay a little more in taxes. >> so that was the president, and here's speaker boehner. >> on wednesday, i outlined a responsible path forward to avert the fiscal cliff without raising tax rates. about 24 hours after i spoke, the congressional budget office released a report showing the most harmful consequences of the fiscal cliff come from increasing tax rates. >> what speaker boehner did not mention was the cbo report said raising the top rate would only shave 1% of 10% off economic growth and only temporarily. those were the two open conditions in washington's showdown since the disaster.

budget negotiators reconvene next week to try, in the words of one aide, to assess where they are. that's what puts republicans where they are in election 2012. it depends on who you ask or how you ask the question, what happened on tuesday night? gop strategist mary matalin, and david fromm, author of "why romney lost and what the gop can do about it." president obama and speaker boehner have said a lot of right things talking about compromise and cooperation, but on taxes, it seems the gap between the two sides is as big as ever, doesn't it? did the election not change anything? >> the election changed a lot. the election changed the underlying power dynamic between the two parties. you know that great line of al capone's, you can get more with a kind word and a gun than you can get with a kind word alone?

the president now has a gun in his hand. the bush tax cuts expire and that makes the republicans sweat. it's a consequence of losing elections, and it's going to be a very uncomfortable month for the two parties. >> mary, what i don't understand, i hear from a lot of republicans, well, the president doesn't have a mandate on this, but both republicans and democrats for a month now have been saying, look, the choice was very clear between these two men. they couldn't be more different. people have said on our program, and yet all of a sudden, if the choice is so clear and before the vote, didn't the american people make that choice, and so shouldn't the president get some capital on this tax issue? >> well, if the exit polls are accurate, and i believe that they are by almost a 10-point margin, voters said they did not want to raise taxes to reduce the deficit. where the common ground is and where it's always been and why the president has resisted this because he'd rather have an

issue than a solution is that we could raise revenues which would largely fall on the rich that he seems to want to pay so much, and we could raise more revenues more quickly without disincentivizing work by raising the top marginal tax rate. so i think there is something there between what the president said and what speaker boehner said, if you want to raise revenues, you can close the loopholes that largely fall on rich people and that will raise way more revenues than the top marginal rate which will disincentivize work. so i hope they can do this. but more than this, as a democratic issue, even president clinton said this. we have a new congress, we have new members in both bodies who did not run on tax increases. there should be some sort of just, let's buy some time, as if the government can't dispense

with the trigger, and then come back and do real tax reform. >> but mary, you're quoting exit polls. president obama ran on the pledge that richer people should pay more taxes, and the american people voted for him. >> but he said, alternately, and inconsistently, i'm going to use these taxes to reduce the deficit, and i'm going to use these taxes to reduce more spending. you can't do both. if you raise the taxes on the rich the way he said we would raise, we spend $10 million a day and we would raise 3 billion a year. it doesn't solve the problem. there was no discussion today about medicare reform, entitlement reform, structured debt reform, which is really what's burdening the economy, not these deficits. >> all right, david fromm, you said something earlier today that i found interesting and it's getting a lot of attention. you said the conservatives have been fleeced and lied to by the,

quote, conservative inner context. tell me what you mean by that? >> there is a large industry that borders the line between show business and information that misleads people about where they really stand. i think that is happening again right now. our -- mary's exchange with mine is a good example of this. there has been a real shift in power dynamics between the president and the republican parties, the republicans' disadvantage. mary and i both deplore it, but it's a fact. the republicans need power, and they've been beaten badly. losing the presidency after throwing everything in this year, economic strain, losing seats in the senate on top of the four seats that were given away by the tea party in 2010, the cost of majority that was otherwise available, losing seats in the house. and all of the bush tax cuts expiring without the president needing to sign anything, without congress needing to do anything. this is a change in power dynamics to the disadvantage of the republican party. i think it's a disadvantage for

the country, too, but the president has this power. and all of it comes from structural problems in the republican party plus a badly executed election, which was lost not because of fancy promises the president made but because republicans failed to deliver a middle class-oriented economic policy. >> well, anderson -- none of that is true -- >> it's all true. >> there is not deplorable. none of it is true, david. you're a friend and you're smart and you're an intellectual, but none of that is true. we didn't turn out our vote, it was conservatives that didn't turn out. not moderates, not independents, and we did not have a good turnout drive. i've done this for 35 years. >> this is complex. isn't there sort of a republican echo chamber. the whole thing about all the polls are wrong and there's this enthusiasm, were they sold a bill of goods, viewers of these shows? >> and what about there's no liberal echo chamber and liberal blogs and liberal tweets or

whatever -- yes, that's the part that's ancillary. but the larger problem here -- david, i've done this for 35 years. romney never overcame that onslaught, that onslaught in the spring. >> when hugh grant got in chernobyl with that prostitution scandal a decade ago, he made a joke on one of the evening chat shows about the people he paid that lied to him. let's not mistake the people that lied to him. this is a big defeat, and it's not just the mechanics of voter turnout, and this was bad. why were they bad? >> that's a legitimate question. was dallas -- >> it's a party that has cut a connection to reality, and the assistance that the turnout vote was good when it was bad, that's just one of the problems.

who was it that -- >> i have to go to a commercial. >> that was also a disaster, yet truth was never told. >> david, i want to have you back on, mary matalin as well. i appreciate it. more news tonight. we'll be right back. tdd#: 1-800-345-2550 let's talk about low-cost investing. tdd#: 1-800-345-2550 at schwab, we're committed to offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr tdd#: 1-800-345-2550

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11 days ago at the height of the storm, two little boys drowned here on staten island. today they were laid to rest in a single casket. four-year-old connor moore and two-year-old brandon were swept away from their mother's arms in floodwaters. trying to get to higher ground. the mother asked for help at a nearby house but was turned away. her husband, who works for the sanitation department, was at work that night. today, his coworkers carried his sons' cass set. friends of the family have set up a fund to help pay for the cost of the funeral. we put that on our website at anderson360.com. erin burnett "outfront" starts after the break.

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